Impact of livelihood diversification on household food security and dietary diversity in Tanzania

Food security and nutrition continue to pose major challenges in Sub-Saharan Africa, where undernourishment remains widespread. Livelihood diversification has emerged as a promising strategy to improve dietary diversity and other food security and nutritional outcomes. However, little is known about how specific combinations of livelihood activities contribute to nutritional adequacy, and how contextual factors, such as intrahousehold income dynamics, market access, and climate shocks, shape this relationship. This study explores how the specific combinations of livelihood activities, along with contextual factors influence household food security and dietary diversity in Tanzania. The findings aim to inform the design of targeted interventions and policy responses. This study draws on nationally representative household panel data collected in Tanzania through the World Bank’s Living Standards Measurement Study (LSMS), focusing on 2012/2013, 2014/2015, and 2019/2020 survey waves. Using a fractional panel regression (FPR) as well as fixed-effects regression model, the study investigates the determinants and, impact of livelihood diversification on three key indicators of food security and nutrition: household dietary diversity, food consumption score, and total food expenditure. The study found that Tanzanian households exhibited moderate livelihood diversification, typically combining farming with other income sources. While diversification—measured by the Herfindahl-Hirschman Index (HHI)—marginally improved over the study period, food security and nutrition (FSN) indicators (HDDS, FCS, and food expenditure) initially rose between 2012/2013 and 2014/2015 but declined in 2019/2020. Results from the fractional regression model show that diversification was higher among female-headed, younger, and wealthier households, while asset ownership, mobile money use, and shocks were linked to lower diversification. Further, the fixed-effects regression analysis revealed that higher diversification was associated with lower FSN outcomes, suggesting that not all diversification pathways are beneficial—particularly those driven by necessity or centered on low-return, informal activities. The study reveals that higher livelihood diversification is linked to lower food security and nutritional outcomes, possibly due to necessity-driven and low-return diversification strategies. The pattern may also reflect cultural or contextual factors that limit the impact of additional income on food choices and nutrition.